Something Has To Give

by Dollars and Sense

This posting is from D&S collective member and frequent blogger Larry Peterson. To see more of his posts, click here.

Last week global markets sold off big-time on Friday, and observers of the financial scene were puzzled due to the fact that no specific event seemed to set off such panic. Today, on the contrary, as of one PM Eastern time, stocks remain in positive terrritory, despite huge gyrations in the US, UK and Europe. And this in spite of these headlines, which I've just taken off Reuters:

Consumers gloomiest ever as home prices plunge

Iceland hikes rates massively

W.House: Autos may be eligible for rescue package

Emerging Europe scrambles to contain crisis threat

OPEC officials say ready to act again to boost oil

Industry bailouts risk unfair trade challenge

And though shares are being boosted by a long-awaited stretch of bargain hunting (fuelled also by the certainty of a one-half percentage point interest rate cut by the Fed this week) the bad news does not end there. Trade expert Dani Rodrick published this salutary thought on his website on 26 October: "I have a feeling that this will be the make-it-or-break-it week for emerging markets. I hope the IMF will make an announcement in time to make a difference." Let's hope (against hope?) the news settles down a little before then. Or maybe not?

Labels: Dani Rodrick, financial crisis, financial crisis bailout, Larry Peterson

 

Please consider donating to Dollars & Sense and/or subscribing to the magazine (both print and e-subscriptions now available!).
10/28/2008 11:39:00 AM